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Microsoft isn't discontinuing only the Android-based Nokia X line. It also is phasing out the Nokia Asha and S40 feature phones as part of its further focus on Windows Phone.



From All About Microsoft:
As part of its layoffs of 18,000 people, announced on July 17, Microsoft is cutting 12,500 of those it acquired as part of its deal to buy Nokia's handset and services division. Among those employees are both professionals and those involved in manufacturing, as well as those who've been working on the Nokia X Android-based phones.

The Verge's Tom Warren reported that employees working on the Nokia Asha and S40 feature phones look to be among the layoff casualties, as well, as will those involved with Nokia's MixRadio offering, which may possibly be spun off as a third-party service. According to Warren, those cuts were detailed in a July 17 e-mail from phone chief Jo Harlow.
  Microsoft to discontinue Nokia Asha and S40 feature phones